Agreement Corporation

Dictionary Says

Definition of 'Agreement Corporation'

A type of bank chartered by a state to engage in international banking. The bank “agrees” with the Federal Reserve Board (FRB) to limit its activities to those allowed an Edge Act corporation.

Investopedia Says

Investopedia explains 'Agreement Corporation'

In 1916, Congress passed the Agreement Corporation Act, which gave national banks the right to invest a portion of their capital and surplus in state-chartered banks and corporations that would conduct international business. The state-chartered bank had to enter into an agreement with the FRB to be bound by its rules and regulations.

The Agreement Corporation Act produced little activity, so in 1919 Congress passed the Edge Act that authorized the FRB to charter corporations to engage in international banking. Both laws have undergone many changes since passage, and many of their restrictions have been relaxed.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Edge Act Corporation

    A banking ...
  2. Federal Reserve System - FRS

    The central bank ...
  3. Federal Reserve Board - FRB

    The governing ...
  4. National Bank

    In the United ...
  5. Chartered Bank

    A financial ...
  6. Alan Greenspan

    The former ...
  7. Monetary Policy

    The actions of a ...
  8. Trillion Dollar Coin

    A trillion ...
  9. Five Hundred Dollar Rule

    A regulation ...
  10. Economic Stimulus

    Attempts by ...

Articles Of Interest

  1. Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  2. The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  3. How The Federal Reserve Was Formed

    Find out how this institution has stabilized the U.S. economy during economic downturn.
  4. How Much Influence Does The Fed Have?

    Find out how current financial policies may affect your portfolio's future returns.
  5. 7 Misconceptions About The Federal Reserve

    There are many fallacies about the Fed. The following misconceptions are among the most popular.
  6. The Link Between The Fed, Money, Debt And Taxes

    Assets on the Fed's balance sheet, money supply level, national debt level and economic production should be maintained in equilibrium.
  7. A Primer On Inflation

    Inflation has a negative connotation, but is it all bad or does it offer some tangible benefits?
  8. Is Your Stock Headed South?

    Don't let your portfolio go with it! Find out which signs to watch out for.
  9. How Interest Rates Affect The Stock Market

    Whether you're buying lunch, a home or a stock, you're influenced by interest rates.
  10. Understanding Interest Rates, Inflation And The Bond Market

    Get to know the relationships that determine a bond's price and its payout.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center